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Tesla plans to create the largest virtual power plant in the world

Tesla has a made a series of developments within the energy storage market in Australia recently. However, this latest project proposal may overshadow all previous exploits. Tesla intends to install solar and powerwalls across 50 000 households, creating the largest virtual power plant in the world.

Tesla’s recent focus has been on delivering the 100MW/129MWh Powerpack project in southern Australia. In contrast to using a large centralized system, the new proposal will include a residential battery system, the Powerwall to deliver a decentralised energy storage system which essentially will create a huge virtual power plant.

Each of the 50,000 homes will be equipped with a 5kW solar systems and 13.5 kWh Tesla Powerwall battery system. The end product will produce in excess of 650 MWh of energy storage capacity distributed across southern Australia.

Tesla announced in a recent statement that they, among others, were invited to submit a plan for innovation in renewables and storage. Tesla’s plan included a proposal to deliver a virtual power plant with 250 MW of solar power and 650 MWh of battery storage. The plan was successful. Tesla explains that the virtual power plant will utilise Tesla Powerwall batteries, storing the collective energy from thousands of households with solar panels. Tesla believes the virtual plant could provide as much energy capacity as a large gas turbine or coal plant.

This new project will be financed by energy sales and the Australian government will be providing a $2 million grant and a further $30 million loan will be provided by the Renewable Technology Fund.

Tesla intends to expand its deployment in the next few years and targets to have completed the installation of all 50,000 systems by 2022.